This article is Part 2 of an 11-part series analysis of Tesla, Elon Musk and EV Revolution. Read Part 1 here. Q3 2019 hedge fund letters, conferences and more castleguard / Pixabay The complexity of the traditional ICE car is mind-boggling. There are several thousand moving parts that are interconnected by belts [...]
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” - F. Scott Fitzgerald Q2 hedge fund letters, conference, scoops etc Blomst / Pixabay You really don’t know the company until you buy the stock. [...]
The stock market is not your friend. Instead, the market awakens a dangerous emotion — fear. Often we are too fearful to invest in stocks, or, having taken the plunge, we become convinced that we are invincible, that our risk tolerance is limitless. Q2 hedge fund letters, conference, scoops etc mohamed_hassan [...]
It seems that Softbank stock has been hated and misunderstood every day we’ve owned it – until recently, when Eric Savitz at Barron’s wrote a front-page story that could not have made a better, clearer case for the stock (link to the story). Eric made many points that I’ve made [...]
It depends on who you ask. If you listen to the media, it was a failure. A successful initial public offering has to feel like July 4th fireworks. The stock opens 30% above the set IPO price and then finishes the day up 100%. That’s a newsworthy IPO that [...]
Vitaliy Katsenelson on investing in marijuana stocks. Q2 hedge fund letters, conference, scoops etc 7raysmarketing / Pixabay Listen on: iTunes | Google Podcasts | Online Question: What do you think about investing in marijuana stocks? We have a great front-row view of this industry, as Colorado was one of the earlier states to legalize marijuana. We think making money [...]
My investment management firm’s portfolio has a large position in the health-care sector, and with AbbVie’s $63 billion takeover bid for Allergan earlier this week, it’s timely to review why we bought into this sector. Q1 hedge fund letters, conference, scoops etc Pexels / Pixabay Without commenting on Allergan shares of which [...]
This article was originally published in Barron’s magazine. Q1 hedge fund letters, conference, scoops etc Free-Photos / Pixabay Markets are buoyant this week on the Fed’s hints of potential rate cuts. But interest rates have been low for more than a decade already and there are downsides to persistently low interest rates: [...]
Question: According to many market commentators, value investing doesn’t work the way it used to, and some tout statistics that growth has outperformed value over the last decade. How do you rebut that view? Q1 hedge fund letters, conference, scoops etc rawpixel / Pixabay Answer: There are two answers to that question. [...]
Recently my firm was hiring a junior analyst – someone who’d work directly with me. In the past we’d post an advertisement and get hundreds of resumes and we’d have to dig through them trying to identify a candidate with the right pedigree and relevant experience. Q1 hedge fund letters, [...]
This article is Part 2 of a 3-part series discussing how investors can avoid acting irrationally. Read Part 1 and Part 3. Q1 hedge fund letters, conference, scoops etc fill / Pixabay Investors are prone to two opposing but equally debilitating fears: the fear of missing out when times are good, and the fear of [...]
A client asked recently for my view on Japanese conglomerate SoftBank Group and its substantial investment in WeWork, whose CEO evidently has sold WeWork stock to buy properties in New York City and California that he has leased back to WeWork. The question on my client’s mind is whether this [...]
This article is Part 1 of a 3-part series discussing how investors can avoid acting irrationally. Read Part 2 and Part 3. Q4 hedge fund letters, conference, scoops etc rawpixel / Pixabay The stock market is not your friend. You want to approach it the same way the American president should approach a one-on-one meeting [...]
Corporate acquisitions often fail for one simple reason: the buyer pays too much. An old Wall Street adage comes to mind: Price is what you pay, value is what you get. It all starts with a control premium. When we purchase shares of a stock, we pay a price [...]
Like many professional investors, I love companies that pay dividends. Dividends bring tangible and intangible benefits: Over the last hundred years, half of total stock returns came from dividends. Q4 hedge fund letters, conference, scoops etc Pexels / Pixabay In a world where earnings often represent the creative output of CFOs’ imaginations, [...]
Wall Street glorifies companies that beat quarterly estimates by arguing that the long term comprises a lot of short terms. But beating earnings estimates for a few consecutive quarters doesn’t necessarily lead to long-term greatness. It assumes that significant changes to the business are visible in the reported numbers. Q3 [...]
I simply don’t trust the fundamentals of the global economy right now. The system is built on quicksand. Debt is growing globally and governments are running huge deficits while interest rates are still incredibly low. Looking at almost any metric, stock markets have been more expensive once in the last 100 [...]
Recently my firm replaced all of our short-term bond exchange-traded funds with U.S. Treasury bills. The core motive for this decision was not to pick up a few points of extra yield, though that’s a nice bonus. We sold these ETFs because we were concerned about the low-probability but [...]
Here’s a big question I’d be asking if I owned Tesla stock: What happened to 345,000 reservations? When Tesla's Model 3 was released, it was supposed to be a $35,000 car. Four hundred thousand people, including yours truly, put down a $1,000 deposit to reserve their spots in line so they [...]
I just finished a ten-page quarterly letter to clients and am taking refuge here to write about anything other than stocks. This scribble will be about a topic that I have been thinking about the last six months. I am somewhat embarrassed about it, because it’s a bit “me”-centered, [...]
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